Jillian Inc.produces leather handbags.The production budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Each handbag requires 1.3 hours of unskilled labor (paid $8 per hour)and 2.2 hours of skilled labor (paid $15 per hour).How much will be paid to skilled labor during the three months July through September?

Question

Quizplus · Accepted Answer

To calculate the cost of skilled labor for July through September, we need to add up the skilled labor hours for those months and multiply by the hourly wage of $15.

July: 5,000 units x 2.2 hours = 11,000 hours of skilled labor
August: 7,000 units x 2.2 hours = 15,400 hours of skilled labor
September: 7,500 units x 2.2 hours = 16,500 hours of skilled labor

Total hours of skilled labor for July-September: 11,000 + 15,400 + 16,500 = 42,900 hours

Multiply the total hours by the hourly rate of $15 to get the total cost of skilled labor:
42,900 hours x $15/hour = $643,500

Therefore, the answer is B.